September 17–18 · Published October 9, 2013
BBBen S. BernankeSeptember 17–18, 2013 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents reflect the FOMC's decision to maintain the pace of asset purchases at $40 billion per month in agency mortgage-backed securities and $45 billion per month in longer-term Treasury securities, while awaiting more evidence of sustained economic progress before adjusting the pace, as explicitly stated in the statement and elaborated in the minutes' discussion of the debate over whether to reduce purchases at that meeting.
Our reading compares the minutes of the September 17–18 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Ben S. Bernanke
- James B. Bullard
- William C. Dudley
- Charles L. Evans
- Esther L. George ↑ dissented
- She saw recent information on the economy as sufficiently positive to warrant a reduction in the pace of the Committee's asset purchases at this meeting. In her view, waiting for more evidence of progress discounted the cumulative improvement in the economy as well as the potential costs of ongoing purchases. Accordingly, not only would a reduction be appropriate in light of the ongoing improvement in labor market conditions, but it also would support the credibility and predictability of monetary policy because it would be seen as following through on the Committee's earlier communications about the outlook for the asset purchase program.
- Jerome H. Powell
- Eric S. Rosengren
- Jeremy C. Stein
- Daniel K. Tarullo
- Janet L. Yellen
From the minutes
FOMC minutes
Voting for this action: Ben Bernanke, William C. Dudley, James Bullard, Charles L. Evans, Jerome H. Powell, Eric Rosengren, Jeremy C. Stein, Daniel K. Tarullo, and Janet L. Yellen.
Voting against this action: Esther L. George.
Ms. George dissented because she saw recent information on the economy as sufficiently positive to warrant a reduction in the pace of the Committee's asset purchases at this meeting. In her view, waiting for more evidence of progress discounted the cumulative improvement in the economy as well as the potential costs of ongoing purchases. Accordingly, not only would a reduction be appropriate in light of the ongoing improvement in labor market conditions, but it also would support the credibility and predictability of monetary policy because it would be seen as following through on the Committee's earlier communications about the outlook for the asset purchase program.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, October 29-30, 2013. The meeting adjourned at 11:15 a.m. on September 18, 2013.
What changed from the previous meeting’s minutes
- The FOMC decided to await more evidence before adjusting asset purchases, rather than reducing them as previously planned.
- The statement added that asset purchases are not on a preset course and remain contingent on the economic outlook.
- The FOMC noted the tightening of financial conditions observed in recent months could slow economic improvement.
- The statement acknowledged improvement in economic activity and labor market conditions since the purchase program began a year ago.
- The FOMC added language to assess whether incoming information supports ongoing improvement before moderating purchases.
- The dissent rationale shifted from signaling near-term reduction to citing sufficient positive data for an immediate reduction.
Summary generated automatically from the two documents.